1. What is foreign exchange trading?
The foreign exchange market is currently the largest financial trading market in the world, with an average daily trading volume of about US $4 trillion. The exchange rates of all currencies in the world are floating and appear in the form of currency pairs at the time of transaction, such as euro against US dollar (EUR / USD) and US dollar against Japanese yen (USD / JPY). It refers to the trading method of buying one currency and selling another currency in a currency pair.
2. What is the opening time of the foreign exchange market?
From 5 p.m. EST on Sunday to 5 p.m. EST on Friday, the foreign exchange market operates 24 hours. Trading starts from Sydney every day. With the rotation of the earth, the business days of each financial center in the world will start in turn, from Tokyo to London and then to New York. Investors can trade according to their work and rest time. Unlike the stock and futures markets, foreign exchange trading does not take the exchange as the trading center. The foreign exchange market is "counter market" or "inter-bank" market because foreign exchange transactions are completed by both parties through the Internet or telephone. Therefore, in the normal opening period of the foreign exchange market, whether day or night, foreign exchange traders can respond to market fluctuations at any time.
3. The main trading currency in the foreign exchange market?
The most frequently traded or active currencies in the foreign exchange market are those of countries with stable government rule, reputable central banks and low inflation. The following major currency pairs account for 85% of the daily trading volume in the foreign exchange market today: US dollar (USD), Japanese yen (JPY), euro (EUR), British pound (GBP), Swiss Franc (CHF), Canadian dollar (CAD), and Australian dollar (AUD).
4. What is margin?
Margin refers to the principle of leveraged investment and the use of part of the funds to establish a position. It is the mortgage to maintain the trading position. In the foreign exchange market, the leverage ratio is usually 0.2% to 5%, which enables investors to trade actively with high leverage ratio. Of course, the margin system not only multiplies the profits, but also increases the transaction risk.
For example, Mr. Zhao is going to make a transaction equivalent to $100000 today. Through margin trading, assuming that the margin ratio is 0.2%, Mr. Zhao only needs 100000 * 0.2% = $200 to conduct this transaction. In other words, as long as the margin of $200 can be traded for $100000, that is, the capital is enlarged 500 times. Therefore, if you invest $10000, you can engage in a transaction of $5 million.
5. How are commissions and fees calculated?
The quotation on the trading platform includes our normal trading spread, which is derived from the interbank trading spread of all major currency pairs. The main currencies include US dollar, British pound, Japanese yen, euro, Swiss franc, Canadian dollar and Australian dollar. TNG Company profits from the spread of money trading.
6. What is overnight interest?
Overnight interest is the interest earned or paid by customers when they hold positions overnight. Overnight interest is payable at 5 p.m. EDT. Any position held by the customer at that time will be automatically included in the calculation of overnight interest and the results will be displayed in the trading account. The amount of interest received or paid depends on the direction of the open position and the different interest rates of the two currencies. For example, suppose that the interest rate of sterling is much higher than that of yen, so if a trader is long GBP / JPY (holding Sterling), he can obtain interest from the extension of the opening position. Conversely, if you short GBP / JPY (hold yen), you need to pay interest.
For the overnight interest query of currency and precious metal contracts, please refer to your MT4 trading platform as follows:
2. The main menu at the top of the platform "Display" -> "List of trading instruments"
4. Please check your overnight interest in the "Sell/Buy Single Swap Inventory Fee" option
7. Why is the overnight interest on Wednesday three times as much as usual?
In the spot foreign exchange market, the date of actual value is two days later. For example, the price on Thursday trading day is reflected on Monday and the price on Friday trading day is reflected on Tuesday. Therefore, on Wednesday, we have to calculate the three-day overnight interest to compensate the overnight interest caused by the weekend (there is no need to pay the overnight interest on the delivery day because the trading is stopped at the weekend).
8. How to do risk management?
In foreign exchange transactions, the most commonly used risk management tools are "stop win order" and "stop loss order". During the trading period under the normal market environment, the winning order limits the maximum buying price or the minimum selling price, that is, selling at a price higher than the current market price or buying at a price lower than the current market price; Stop loss order is usually used to set a specific price to automatically clear the position when the market is contrary to the investor's position building direction, so as to help minimize losses during the trading period under normal market environment, that is, sell at a lower price than the current market price or buy at a higher price than the current market price. Of course, the above two orders can not guarantee to avoid transaction risk at any time.
9. What is the trading time of spot trading of gold and silver?
At TNG Company global limited, you can trade spot gold and silver 24 hours a day, 5 days a week. TNG Company's spot gold and silver trading hours are from 18:00 on Sunday to 17:00 on Friday, Eastern time. During this period, the market will be closed briefly only from 17:15 to 18:00 every day.
10. How many ounces is a hand of gold and silver spot contract equal to?
Spot gold contract: 1 hand or 1 contract = 100 troy ounces.
11. How to calculate the margin required for gold and silver spot transactions?
TNG Company provides leverage up to 100:1. High leverage not only brings you more benefits, but also risks.
12. What are the point values of spot trading of gold and silver?
The spot value of gold is $10 / hand (i.e. 100 ounces). The point value of silver spot trading point is $50 / hand (i.e. 5000 ounces).
13. Do gold and silver spot contracts have a validity period?
No, As long as there is sufficient margin in the maintenance account, your position will remain valid until you close your position. Like foreign exchange trading, the position of gold trading will be automatically extended to the delivery time of the next trading day after the market in New York is closed at 17:00 EDT.
14. What is the value of 1 point when trading crude oil?
If one hand of crude oil is traded, the value of one point is US $1. If you trade 5 hands, the value of each point is $5.
15. Can I keep my position for weekends and major holidays?
sure. You can keep your position for weekends or major holidays, but please pay attention to whether the margin balance of the account is enough to withstand market fluctuations. Like currency pairs, the so-called short jump often occurs when crude oil trading reopens. We recommend that the funds in the trader's account can withstand at least 1% of the negative fluctuation of the position to avoid forced closing.
16. What does the price of crude oil mean?
Represents the US dollar price of 100 barrels of Brent crude oil (Uko / USD) or west Texas crude oil (USO / USD).
17. What is the difference between Brent crude oil, West Texas crude oil and other types of crude oil?
Crude oil can be divided into light crude oil and heavy crude oil according to API gravity, and can also be divided into sulfur-containing crude oil and low sulfur crude oil according to sulfur content. Brent crude oil is a light and low sulfur crude oil produced in several oil regions of the North Atlantic. Usually, the price of Brent crude oil will be higher than the OPEC composite index. West Texas Intermediate oil is relatively light and has lower sulfur content, and its quotation is usually lower than Brent crude oil.